Concerns Over Mortgage Servicer's Ability to Handle More Loans

The red-hot market to buy mortgage-servicing rights got a splash of cold water as a New York regulator stopped a $2.7 billion deal.

Ocwen Financial Corp., one of the nation's largest mortgage servicers, said the state's Department of Financial Services "halted indefinitely" its agreement to buy the rights to service $39 billion of loans from Wells Fargo & Co.